Is an employer required to pay accrued vacation time after an employee resigns?
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Is an employer required to pay accrued vacation time after an employee resigns?
I resigned from my job on good terms and had 64 hours of accrued vacation time remaining. Previously, the employer had paid employees for accrued vacation time after termination. However, there was nothing in our ‘handbook’ regarding my inquiry. My final pay stub still shows that I have the balance of PTO remaining.
Asked on February 1, 2018 under Employment Labor Law, Idaho
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
There is no general legal obligation in your state to pay out accrued vacation time on termination of employment. If there is a written employment contract or clear, unequivocal policy statement in writing, such as in an employee handbook, giving you the right to a pay out, your employer will have to pay you. But in the absence of written contract or policy statement, it is at the employer's discretion: they could choose to pay or not (including choosing to pay some employees, but not others).
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